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Executive Summary:

In late 2024 an Indian healthcare provider experienced a severe cybersecurity attack that demonstrated how powerful AI ransomware is. This blog discusses the background to the attack, how it took place and the effects it caused (both medical and financial), how organisations reacted, and the final result of it all, stressing on possible dangers in the healthcare industry with a lack of sufficiently adequate cybersecurity measures in place. The incident also interrupted the normal functioning of business and explained the possible economic and image losses from cyber threats. Other technical results of the study also provide more evidence and analysis of the advanced AI malware and best practices for defending against them. 

1. Introduction

The integration of artificial intelligence (AI) in cybersecurity has revolutionised both defence mechanisms and the strategies employed by cybercriminals. AI-powered attacks, particularly ransomware, have become increasingly sophisticated, posing significant threats to various sectors, including healthcare. This report delves into a case study of an AI-powered ransomware attack on a prominent Indian healthcare provider in 2024, analysing the attack's execution, impact, and the subsequent response, along with key technical findings.

2. Background 

 In late 2024, a leading healthcare organisation in India which is involved in the research and development of AI techniques fell prey to a ransomware attack that was AI driven to get the most out of it. With many businesses today relying on data especially in the healthcare industry that requires real-time operations, health care has become the favourite of cyber criminals. AI aided attackers were able to cause far more detailed and damaging attack that severely affected the operation of the provider whilst jeopardising the safety of the patient information.  

 3. Attack Execution 

The attack began with the launch of a phishing email designed to target a hospital administrator. They received an email with an infected attachment which when clicked in some cases injected the AI enabled ransomware into the hospitals network. AI incorporated ransomware was not as blasé as traditional ransomware, which sends copies to anyone, this studied the hospital’s IT network. First, it focused and targeted important systems which involved implementation of encryption such as the electronic health records and the billing departments. 

The fact that the malware had an AI feature allowed it to learn and adjust its way of propagation in the network, and prioritise the encryption of most valuable data. This accuracy did not only increase the possibility of the potential ransom demand but also it allowed reducing the risks of the possibility of early discovery. 

 4. Impact 

•  The consequences of the attack were immediate and severe: The consequences of the attack were immediate and severe.
•  Operational Disruption: The centralization of important systems made the hospital cease its functionality through the acts of encrypting the respective components. Operations such as surgeries, routine medical procedures and admitting of patients were slowed or in some cases referred to other hospitals. 
•  Data Security: Electronic patient records and associated billing data became off-limit because of the vulnerability of patient confidentiality. The danger of data loss was on the verge of becoming permanent, much to the concern of both the healthcare provider and its patients. 
•  Financial Loss: The attackers asked for 100 crore Indian rupees (approximately 12 USD million) for the decryption key. Despite the hospital not paying for it, there were certain losses that include the operational loss due to the server being down, loss incurred by the patients who were affected in one way or the other, loss incurred in responding to such an incident and the loss due to bad reputation. 

5. Response

As soon as the hotel’s management was informed about the presence of ransomware, its IT department joined forces with cybersecurity professionals and local police. The team decided not to pay the ransom and instead recover the systems from backup. Despite the fact that this was an ethically and strategically correct decision, it was not without some challenges. Reconstruction was gradual, and certain elements of the patients’ records were permanently erased. 

 In order to avoid such attacks in the future, the healthcare provider put into force several organisational and technical actions such as network isolation and increase of cybersecurity measures. Even so, the attack revealed serious breaches in the provider’s IT systems security measures and protocols. 

6. Outcome

The attack had far-reaching consequences:

• Financial Impact: A healthcare provider suffers a lot of crashes in its reckoning due to substantial service disruption as well as bolstering cybersecurity and compensating patients. 
•  Reputational Damage: The leakage of the data had a potential of causing a complete loss of confidence from patients and the public this affecting the reputation of the provider. This, of course, had an effect on patient care, and ultimately resulted in long-term effects on revenue as patients were retained. 
•  Industry Awareness: The breakthrough fed discussions across the country on how to improve cybersecurity provisions in the healthcare industry. It woke up the other care providers to review and improve their cyber defence status. 

7. Technical Findings

The AI-powered ransomware attack on the healthcare provider revealed several technical vulnerabilities and provided insights into the sophisticated mechanisms employed by the attackers. These findings highlight the evolving threat landscape and the importance of advanced cybersecurity measures.

7.1 Phishing Vector and Initial Penetration

• Sophisticated Phishing Tactics: The phishing email was crafted with precision, utilising AI to mimic the communication style of trusted contacts within the organisation. The email bypassed standard email filters, indicating a high level of customization and adaptation, likely due to AI-driven analysis of previous successful phishing attempts.
• Exploitation of Human Error: The phishing email targeted an administrative user with access to critical systems, exploiting the lack of stringent access controls and user awareness. The successful penetration into the network highlighted the need for multi-factor authentication (MFA) and continuous training on identifying phishing attempts.

7.2 AI-Driven Malware Behavior

• Dynamic Network Mapping: Once inside the network, the AI-powered malware executed a sophisticated mapping of the hospital's IT infrastructure. Using machine learning algorithms, the malware identified the most critical systems—such as Electronic Health Records (EHR) and the billing system—prioritising them for encryption. This dynamic mapping capability allowed the malware to maximise damage while minimising its footprint, delaying detection.
• Adaptive Encryption Techniques: The malware employed adaptive encryption techniques, adjusting its encryption strategy based on the system's response. For instance, if it detected attempts to isolate the network or initiate backup protocols, it accelerated the encryption process or targeted backup systems directly, demonstrating an ability to anticipate and counteract defensive measures.
• Evasive Tactics: The ransomware utilised advanced evasion tactics, such as polymorphic code and anti-forensic features, to avoid detection by traditional antivirus software and security monitoring tools. The AI component allowed the malware to alter its code and behaviour in real time, making signature-based detection methods ineffective.

7.3 Vulnerability Exploitation

• Weaknesses in Network Segmentation: The hospital’s network was insufficiently segmented, allowing the ransomware to spread rapidly across various departments. The malware exploited this lack of segmentation to access critical systems that should have been isolated from each other, indicating the need for stronger network architecture and micro-segmentation.
• Inadequate Patch Management: The attackers exploited unpatched vulnerabilities in the hospital’s IT infrastructure, particularly within outdated software used for managing patient records and billing. The failure to apply timely patches allowed the ransomware to penetrate and escalate privileges within the network, underlining the importance of rigorous patch management policies.

7.4 Data Recovery and Backup Failures

• Inaccessible Backups: The malware specifically targeted backup servers, encrypting them alongside primary systems. This revealed weaknesses in the backup strategy, including the lack of offline or immutable backups that could have been used for recovery. The healthcare provider’s reliance on connected backups left them vulnerable to such targeted attacks.
• Slow Recovery Process: The restoration of systems from backups was hindered by the sheer volume of encrypted data and the complexity of the hospital’s IT environment. The investigation found that the backups were not regularly tested for integrity and completeness, resulting in partial data loss and extended downtime during recovery.

7.5 Incident Response and Containment

• Delayed Detection and Response: The initial response was delayed due to the sophisticated nature of the attack, with traditional security measures failing to identify the ransomware until significant damage had occurred. The AI-powered malware’s ability to adapt and camouflage its activities contributed to this delay, highlighting the need for AI-enhanced detection and response tools.
• Forensic Analysis Challenges: The anti-forensic capabilities of the malware, including log wiping and data obfuscation, complicated the post-incident forensic analysis. Investigators had to rely on advanced techniques, such as memory forensics and machine learning-based anomaly detection, to trace the malware’s activities and identify the attack vector.

8. Recommendations Based on Technical Findings

To prevent similar incidents, the following measures are recommended:

1. AI-Powered Threat Detection: Implement AI-driven threat detection systems capable of identifying and responding to AI-powered attacks in real time. These systems should include behavioural analysis, anomaly detection, and machine learning models trained on diverse datasets.
2. Enhanced Backup Strategies: Develop a more resilient backup strategy that includes offline, air-gapped, or immutable backups. Regularly test backup systems to ensure they can be restored quickly and effectively in the event of a ransomware attack.
3. Strengthened Network Segmentation: Re-architect the network with robust segmentation and micro-segmentation to limit the spread of malware. Critical systems should be isolated, and access should be tightly controlled and monitored.
4. Regular Vulnerability Assessments: Conduct frequent vulnerability assessments and patch management audits to ensure all systems are up to date. Implement automated patch management tools where possible to reduce the window of exposure to known vulnerabilities.
5. Advanced Phishing Defences: Deploy AI-powered anti-phishing tools that can detect and block sophisticated phishing attempts. Train staff regularly on the latest phishing tactics, including how to recognize AI-generated phishing emails.

9. Conclusion

The AI empowered ransomware attack on the Indian healthcare provider in 2024 makes it clear that the threat of advanced cyber attacks has grown in the healthcare facilities. Sophisticated technical brief outlines the steps used by hackers hence underlining the importance of ongoing active and strong security. This event is a stark message to all about the importance of not only remaining alert and implementing strong investments in cybersecurity but also embarking on the formulation of measures on how best to counter such incidents with limited harm. AI is now being used by cybercriminals to increase the effectiveness of the attacks they make and it is now high time all healthcare organisations ensure that their crucial systems and data are well protected from such attacks.

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Introduction

The recent inauguration of the Google Safety Engineering Centre (GSEC) in Hyderabad on 18th June, 2025, marks a pivotal moment not just for India, but for the entire Asia-Pacific region’s digital future. As only the fourth such centre in the world after Munich, Dublin, and Málaga, its presence signals a shift in how AI safety, cybersecurity, and digital trust are being decentralised, leading to a more globalised and inclusive tech ecosystem. India’s digitisation over the years has grown at a rapid scale, introducing millions of first-time internet users, who, depending on their awareness, are susceptible to online scams, phishing, deepfakes, and AI-driven fraud. The establishment of GSEC is not just about launching a facility but a step towards addressing AI readiness, user protection, and ecosystem resilience.

Building a Safer Digital Future in the Global South

The GSEC is set to operationalise the Google Safety Charter, designed around three core pillars: empowering users by protecting them from online fraud, strengthening government cybersecurity and enterprise, and advancing responsible AI in the platform design and execution. This represents a shift from the standard reactive safety responses to proactive, AI-driven risk mitigation. The goal is to make safety tools not only effective, but tailored to threats unique to the Global South, from multilingual phishing to financial fraud via unofficial lending apps. This centre is expected to stimulate regional cybersecurity ecosystems by creating jobs, fostering public-private partnerships, and enabling collaboration across academia, law enforcement, civil society, and startups. In doing so, it positions Asia-Pacific not as a consumer of the standard Western safety solutions but as an active contributor to the next generation of digital safeguards and customised solutions.

Previous piloted solutions by Google include DigiKavach, a real-time fraud detection framework, and tools like spam protection in mobile operating systems and app vetting mechanisms. What GSEC might aid with is the scaling and integration of these efforts into systems-level responses, where threat detection, safety warnings, and reporting mechanisms, etc., would ensure seamless coordination and response across platforms. This reimagines safety as a core design principle in India’s digital public infrastructure rather than focusing on attack-based response. 

CyberPeace Insights

The launch aligns with events such as the AI Readiness Methodology Conference recently held in New Delhi, which brought together researchers, policymakers, and industry leaders to discuss ethical, secure, and inclusive AI implementation. As the world grapples with how to deal with AI technologies ranging from generative content to algorithmic decisions, centres like GSEC can play a critical role in defining the safeguards and governance structures that can support rapid innovation without compromising public trust and safety. The region’s experiences and innovations in AI governance must shape global norms, and the role of Tech firms in doing so is significant. Apart from this, efforts with respect to creating digital infrastructure and safety centres addressing their protection resonate with India’s vision of becoming a global leader in AI. 

References

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• https://www.thehindu.com/news/cities/Hyderabad/google-safety-engineering-centre-india-inaugurated-in-hyderabad/article69708279.ece 
• https://www.businesstoday.in/technology/news/story/google-launches-safety-charter-to-secure-indias-ai-future-flags-online-fraud-and-cyber-threats-480718-2025-06-17?utm_source=recengine&utm_medium=web&referral=yes&utm_content=footerstrip-1&t_source=recengine&t_medium=web&t_content=footerstrip-1&t_psl=False
• https://blog.google/intl/en-in/partnering-indias-success-in-a-new-digital-paradigm/ 
• https://blog.google/intl/en-in/company-news/googles-safety-charter-for-indias-ai-led-transformation/
• https://economictimes.indiatimes.com/magazines/panache/google-rolls-out-hyderabad-hub-for-online-safety-launches-first-indian-google-safety-engineering-centre/articleshow/121928037.cms?from=mdr

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INTRODUCTION:

The Ministry of Defence has recently designated the Additional Directorate General of Strategic Communication in the Indian Army as the nodal officer now authorised to send removal requests and notices to social media intermediaries regarding posts consisting of illegal content with respect to the Army. Earlier, this process was followed through the Ministry of Electronics and Information Technology (MeitY). The recent designation gives the Army the autonomy of circumnavigating the old process and enables them to send direct notices (as deemed appropriate by the government and its agency). Let us look at the legal framework that allows them to do so and its policy implications. 

BACKGROUND AND LEGAL FRAMEWORK:

Section 69 of the IT Act 2000 gives the government the power to issue directions for interception, monitoring or decryption of any data/information through any computer resource. This is done so under six reasons related to:

• Upholding the sovereignty or integrity of India
• Security of the state
• Defence of India
• Friendly relations with foreign states
• Public order or for preventing incitement of any cognisable offence
• Investigations of offences related to the aforementioned reasons 

Section 79(3)(b) of the Information Technology Act 2000 is another aspect of the law related to the removal of data on notification. It allows for all intermediaries (including internet service providers and social media platforms) to have safety harbours from the liability of the content put out by third parties/users on their platforms. This, however, is only applicable when the intermediary has either received a notification or actual knowledge by the appropriate government or its agency of the data on their platform being used for unlawful acts and complies promptly by removing the data from their platform without tampering with evidence.

PLAUSIBLE REASONS FOR POLICY DECISION:

Cases related to the Indian Army are sensitive for a number of reasons, rooted in the fact that they directly pertain to the nation's security, integrity and sovereignty. The impact of the spread of misinformation and disinformation is almost instantaneous and the stakes are high in any circumstance, but exceptionally so when it comes to the Armed Forces and the nation’s security status. A mechanism to tackle cases of such a security level should allow for quick action from the authorities. Owing to the change in the ability to notify directly rather than through another ministry, the army can now promptly deal with these concerns as and when they arise. One immediate benefit of this change is that the forces can now quickly respond to instances where foreign states and actors with malicious intent put out information that can cause harm to the nation’s interests, image and integrity. 

This step helps the forces deal with countering misinformation, ensuring national security and even addressing issues of online propaganda. An example of sensitive content about the army leading to legal intervention is the case of Delhi-based magazine The Caravan. The Defence Ministry, along with the Intelligence Bureau and the Jammu and Kashmir police ordered the Delhi-based publication to remove an article claiming the murder and torture of civilians by the Indian army in Jammu and Kashmir citing the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. The instruction was challenged by the magazine in the courts.

CONCLUSION:

This move brings with it potential benefits along with risks and the focus should always be on maintaining a balanced approach. Transparency and accountability are imperative and checks on related guidelines so as to prevent misuse while simultaneously protecting national security should be at the centre of the objective of the policy approach. Misinformation in and about the armed forces must be dealt with immediately.

REFERENCES:

• https://www.hindustantimes.com/india-news/army-can-now-directly-issue-notices-to-remove-online-posts-101730313177838.html
• https://www.hindustantimes.com/india-news/inside-79-3-b-the-content-blocking-provision-with-many-legal-grey-areas-101706987924882.html
• https://www.thehindu.com/news/national/govt-orders-magazine-to-take-down-article-on-army-torture-and-murder-in-jammu/article67840790.ece
• https://myind.net/Home/viewArticle/army-gains-authority-to-directly-issue-notice-to-take-down-online-posts

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